Homestead Funding offers a multitude of loan programs and services in one friendly package. Our in house processing, underwriting and closing staff enable us to streamline and control the mortgage process for ultimate efficiency.

Homestead Funding Corp. is a multi-state licensed mortgage banker having satisfied thousands of customers and originated billions in residential loans. Since our inception we have continued to grow at an unparalleled rate for the mortgage industry. Throughout this growth we have maintained and built upon our reputation of exceptional service, honesty, integrity and financial reliability.

Homestead Funding Corp. is committed to working with our borrowers from application to closing and beyond to ensure the process goes smoothly. We care about each of our clients and make sure we listen to their specific needs in order to provide the necessary tools and offer the products that will ensure they have a successful transaction.

Allowable seller contributions depend upon the down payment and occupancy

No first-time home buyer restrictions

Co-signers are allowed to help buyers qualify for single family residences

Conforming loan limits apply

What is a Conventional Mortgage?

A Conventional loan refers to a mortgage that follows the guidelines of government sponsored enterprises (GSEs) such as Fannie Mae or Freddie Mac but is not guaranteed or insured by the federal government.

Conventional mortgages can be classified as conforming or non-conforming. A conforming loan meets the parameters set forth by Fannie Mae or Freddie Mac while a non-conforming loan is one which exceeds the maximum loan limits established by these GSEs.

How a Conventional Mortgage works:

Conventional loans can be insured or uninsured. The insurance for conventional loans is referred to as Private Mortgage Insurance (PMI) and is a policy issued to provide protection to the lender in the event of financial loss due to a borrower’s default. Generally, a loan over 80% of the property’s value will require PMI insurance.

A strong credit history is a typical requirement for a conventional mortgage. Lenders tend to offer lower rates to borrowers who have clean credit histories and higher credit scores.

Conventional programs typically require a 5% down payment which must come from the borrower’s own funds. After this initial 5%, the remaining funds may be a gift to the homebuyer from a conventional allowable source. Gift funds that meet or exceed 20% of the property’s value do not require a minimum buyer contribution.

Conforming loan limits are set by Fannie Mae and Freddie Mac (GSEs) and are evaluated on an annual basis.

Purchase and refinance transactions are eligible for conventional loan programs.

You will benefit from the Conventional loan program if you:

Have a 20% or greater down payment

Need financing for a second home or an investment property

Desire the ability to waive the requirement to escrow for taxes and insurance with a down payment of 20% or greater

Need to finance a property that exceeds FHA loan limits

Are looking for flexible PMI requirements for loans with down payments less than 20%